Hi everyone I tried prof mark questions, I came across this question which I have no idea why. Can anybody help me in this question
I want to know why can’t I calculate the continuous compounding then I do the tvm. Why prof straight away calculate tvm. My answer is c
The question wants the value at time 6. You already know the value at time 3, so you roll it up with 3 years’ interest at 6.25% compounded annually.
Got it thank u
Hi I don’t really get the explanation. I use N=18, but answer put N=19. Can anybody let me know how to deal with it?
The accumulated value is at time 20, with the deposits happening at times 2, 3, 4, …20 for a total of 19 payments.(first payment at time 2, second at time 3,… 19th payment at time 20).
